Mr Anderson welcomed the progress, and said he had organised a community stakeholder meeting to update the community on the redevelopment.

He said the clinical services plan would focus on which services locals needed "well into the future, including medical, surgical, maternity and obstetric services".

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"Consultations have been held with local clinicians as well as health service volunteers and community groups to achieve the best possible outcome for the local community," Mr Anderson said.

"Once the clinical services plan is complete and endorsed by the Health Minister, a project team will prepare a facilities master plan to further develop the project."

He said this would also be undertaken in consultation with locals "to determine how best to utilise the Gunnedah Rural Health Centre".

"When the $53 million [hospital] upgrade is completed, Gunnedah and district residents can look forward to modern medical facilities, delivering a range of new and upgraded medical services," Mr Anderson said.

"I want this precinct to be a health centre of excellence, delivering for the people of Gunnedah and the wider region.

"The multi-million dollar investment further underscores Gunnedah's standing as a vitally important regional centre."